| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| Surmodics, Inc. |
| 9924 West 74th Street, Eden Praire, MN 55344 * (612) 829-7200 |
| SurModics, Inc. is a leading provider of surface modification solutions to the medical device industry. The Company's primary focus is the commercialization of its patented PhotoLink process through third-party licensing arrangements. |
| Manager | Tier | Phone |
| John G. Kinnard | Lead Manager | (612) 370-2844 |
| NASNTL: | SRDX | Manufacturing: | SIC 2899 | |
| Type of Shares: | Common Shares | Filing Date: | 12/24/97 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 3/3/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $7.50 - $8.50 | |
| Primary Shares: | 2,000,000 | Offer Price: | $7.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.56 | |
| Offering Amount: | $16,000,000 | Selling: | $0.33 | |
| Expenses: | $350,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 6,908,180 |
| Issuer's Law Firm: | Fredrikson & Byron |
| Bank's Law Firm: | Oppenheimer Wolff & Donnelly |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 9/30/97 | 9/30/97 | ||||
| Revenue: | $7.58 | Assets: | $6.45 | ||
| Net Income: | $0.24 | Curr Assets: | $3.21 | ||
| EPS: | $0.04 | Liabilities: | $1.35 | ||
| Prior EPS: | -$0.04 | Curr Liab: | $1.08 | ||
| Cash Flow/Oper: | $0.53 | Equity: | $5.10 | ||
| Cash Flow/Fin: | $0.18 | Cash: | $3.82 | ||
| Cash Flow/Inv: | -$2.23 | Working Cap: | $2.13 | ||
| Competition |
| The Company operates in a highly competitive and rapidly evolving field and new developments are expected to continue at a rapid pace. The Company's success depends, in part, upon its ability to maintain a competitive position in the development of technologies and products in its areas of focus. The Company's PhotoLink technology competes with technologies developed by Biocompatibles International plc, Carmeda (a division of Norsk Hydro USA, Inc.), Specialty Coatings Systems, Spire Corporation and STS Biopolymers Inc., among others. In addition, many medical device manufacturers have developed or are engaged in efforts to develop surface modification technologies generally for use on their own products. Competition may also result from development efforts by existing and potential licensees who have no obligation to deal exclusively with the Company in utilizing or developing surface modification technologies. Many of the Company's existing and potential competitors (including medical device manufacturers pursuing coating solutions through their own research and development efforts) have substantially greater financial and technical resources and production and marketing capabilities than the Company. There can be no assurance that the Company will be able to compete effectively with such competitors. Furthermore, there can be no assurance that new products or technologies developed by others, or the emergence of new industry standards, will not render the Company's products or technologies or licensees' products incorporating the Company's technologies noncompetitive or obsolete. Any new technologies which make the Company's PhotoLink technology less competitive or obsolete would have a material adverse effect on the Company's business, financial condition and results of operations. |
| Business Plan |
| The Company's goal is to be the leading provider of surface modification solutions to companies in the medical device industry. To achieve this goal, SurModics intends to implement the following key strategies: (i) FURTHER PENETRATE AND EXPAND ITS LICENSING BASE, (ii) FURTHER DEVELOP APPLICATIONS FOR THE PHOTOLINK TECHNOLOGY, (iii) EXPAND SALES AND MARKETING RESOURCES, (iv) SEEK JOINT DEVELOPMENT PROGRAMS and (v) EXPAND THE COMPANY'S PRODUCT PORTFOLIO. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for research and development, sales and marketing and upgrades to its manufacturing equipment, to strengthen its patent protection and for working capital and general corporate purposes. |